Multiple important mortgage rates were down in the Baltimore area this week.
Key 30-year rate slides in Baltimore
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Baltimore area moved downward to 3.96 percent, according to Bankrate's national survey of large lenders. The local rate was lower than the national average rate of 4.05 percent, and was down a substantial 14 basis points from last week. A basis point is one-hundredth of 1 percentage point.
The mortgages in the survey for this week had an average of 0.19 discount and origination points.
The drop in the 30-year fixed will benefit those who waited to lock on a rate, as that turned out to be a smart bet.
Monthly payments on a hypothetical $165,000 mortgage slid to $783.94, slipping $13.23 from last week, corresponding with the slip in mortgage rates.
No clear direction for other Baltimore mortgage types
The average rate for 30-year jumbo mortgages fell this week, down 10 basis points to 4.15 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Baltimore area, that limit is $517,500.
The average rate for 15-year fixed-rate mortgages fell to 3.18 percent, slipping 4 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates ticking downwards, ticking down $3.20 to $1,153.80.
The 15-year fixed is a popular mortgage for homeowners who want to refinance. With this downward trend in the 15-year fixed, a refinance will be more profitable to some homeowners.
The benchmark 5/1 adjustable-rate mortgage rate remained constant at 3.04 percent this week. 5/1 adjustable-rate mortgages allow property owners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after. They are the most popular variety of variable-rate mortgage.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted August 16, 2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $517,500 in the Baltimore area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.96%||3.18%||3.04%||4.15%|
|Change from last week:||-0.14||-0.04||N/C||-0.10|
|Change from last week:||-$13.23||-$3.20||N/C||-$30.02|
Methodology: The "Bankrate.com National Average," or "national survey of large lenders," is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison.
To learn more about the different rate averages Bankrate publishes, see "Understanding Bankrate's Rate Averages."